Ask yourself these questions about the place you travel to: 📍 How often do you go there? ☐ Do you attend the same place regularly (daily, weekly, monthly)? ☐ Is there a pattern or routine to your visits? 👉 If yes, HMRC are more likely to see it as permanent. ⏳ How long has it lasted (or will it last)? ☐ Have you worked there for more than 24 months, or do you expect to? ☐ Do you spend 40% or more of your working time there? 👉 If yes to both, it is very likely permanent und

From 6 April 2026, UK employees working from home can no longer claim a tax deduction for homeworking expenses through Self Assessment or an employment expenses claim route. The key change is that the former employee relief is withdrawn; only employer reimbursements can still be paid tax-free if the strict conditions are met. What was deductible before 6 April 2026 Before that date, where the employee was required to work from home, the deductible expenses were limited to add

For a UK limited company, employee entertaining and staff-facing events can be deductible in some cases, but client entertainment is generally disallowed; staff training is usually allowable if it is genuinely work-related. Employee entertaining HMRC’s corporate tax rules disallow business entertainment, but they carve out entertainment of employees as an exception, provided it is wholly and exclusively for the trade and not merely incidental to customer entertainment. So a s

One of the first big decisions for a new UK business 👇 There’s no one-size-fits-all answer — but here’s a simple breakdown to help you choose 👇 🔹 Sole Trader ✔ Quick and low-cost to set up✔ You and the business are the same (simple, but higher personal risk)✔ Pay Income Tax + National Insurance on all profits✔ Simple bookkeeping and Self Assessment⚠️ From April 2026, many sole traders must follow Making Tax Digital (MTD): Digital records Quarterly updates to HMRC MTD-compa

Managing the finances of a small business can feel overwhelming. But with the right approach, bookkeeping becomes a manageable, even enjoyable, part of running your company. Keeping accurate records helps you understand your cash flow, prepare for tax time, and make informed decisions that grow your business. I’m here to share practical, easy-to-follow small business bookkeeping tips that will help you stay organised and stress-free. Practical Small Business Bookkeeping Tips

Running a small business in the UK can be both exciting and challenging. One of the biggest challenges I’ve seen is managing finances smartly. It’s not just about keeping the books balanced; it’s about making your money work for you. When you get financial management right, you reduce stress, increase profits, and set your business up for long-term success. Let me share some practical, easy-to-follow financial management tips that can help you take control of your business fi

When you run a small private limited company, understanding the ins and outs of company car tax can feel like navigating a maze. But it doesn’t have to be complicated. I’m here to break down the essentials of company car tax rules in the UK, so you can make informed decisions that benefit your business and keep your finances on track. Company cars can be a great perk for directors and employees, but they come with tax implications that you need to understand. Let’s dive into

Running a small private limited company can be rewarding but also challenging, especially when it comes to managing your finances. That’s where a chartered accountant steps in. Finding the right professional to support your business is crucial. In this guide, I’ll walk you through everything you need to know about chartered accountants, how they can help your business thrive, and what to expect when working with one. Why Choose Chartered Accountants? Choosing a local accounta

The Chancellor has announced that the tax-free mileage allowance has increased by 10p per mile to 55p per mile 👏 Even better?✅ The increase can be backdated to 6 April 2026. For years, the approved mileage allowance sat at 45p per mile for the first 10,000 business miles, despite rising fuel, insurance and vehicle costs. This increase is a welcome boost for employees and directors using their own car for business journeys. 💷 Worked example: An employee drives 8,000 business

When running a business or managing finances, you might hear the terms accounting profit and taxable profit used interchangeably. Yet, these two concepts are quite different and understanding the distinction is crucial for accurate financial reporting and tax compliance. This post explains what sets accounting profit apart from taxable profit, why the difference matters, and how it affects your business decisions. Financial report displaying accounting and taxable profit ca

⭐ 1. Employee-only Entertainment – Generally Tax Deductible The cost of entertaining employees (staff) is a tax deductible business expense , provided the expenditure is wholly and exclusively for business purposes and not merely incidental to entertaining others such as clients or suppliers. Examples include: Staff Christmas parties Team-building events that are genuinely for employees Sporting or social events solely for staff This exception to the general ban on entertai

1. What MTDIT is MTDIT (Making Tax Digital for Income Tax) is a new way of reporting income tax to HMRC using approved software rather than paper forms or the current online Self-Assessment return alone. Key points: - It applies to individuals with business and/or property income over a set threshold - You must keep digital records of income and expenses in software or spreadsheets that link digitally to HMRC. - Instead of one annual Self Assessment, you send quarterl

Starting a limited company comes with great opportunities to be tax efficient—but also a few rules that need to be followed carefully. This guide highlights some more popular areas where you can legitimately extract value from your company. ⚠️ First Things First (Golden Rules) Before we get into specifics: ✅ All contracts must be in the company name (not your personal name) ✅ All costs should be paid directly from the company bank account ❌ Avoid paying personally and re

Running a small business is exciting but managing the finances can sometimes feel overwhelming. I’ve been there, and I know how crucial it is to keep your books in order without getting lost in complicated jargon or endless paperwork. That’s why I want to share some practical, easy-to-follow small business bookkeeping tips that will help you stay on top of your finances, reduce stress, and focus on growing your business. Why Small Business Bookkeeping Tips Matter Bookkeeping

The new tax year has started, and with it come several changes that business owners, company directors and landlords should have on their radar. Here are a few key points for 2026/27 👇 💷 National Minimum Wage increase The National Living Wage for workers aged 21+ has increased to £12.71 per hour . If you employ staff, now is a good time to check: • Payroll software has been updated • Salaries still comply with minimum wage rules • Employment budgets reflect the higher cost

Starting out as a sole trader is a straightforward way to run a small business. It’s simple, flexible, and easy to manage. But as your business grows, you might find that staying a sole trader no longer fits your needs. Switching to a limited company can bring many benefits, from tax savings to added credibility. In this post, I’ll walk you through the key advantages of making the switch, when it might be the right time, and practical steps to get there. Why Consider the Swit

If your team spends time in front of screens, this is a simple win for both their wellbeing and your company’s tax position. Here’s the good news: ✅ Eye tests paid for by your limited company are tax-free No Benefit in Kind. No PAYE. No NIC. Just a fully allowable business expense. This applies where employees use display screen equipment (VDU) - spoiler: that’s most of us. 👓 The eye test is easy… it’s the glasses that cause the tax headache. If they’re specifically for VDU

Running a small business is exciting but can also be overwhelming. Managing finances, taxes, and compliance often feels like a full-time job on its own. That’s where professional accountancy solutions come in. They help you focus on what you do best - growing your business - while ensuring your financial matters are in expert hands. In this post, I’ll walk you through the key benefits of working with a chartered accountant and how their support can make a real difference to y

Short answer? For many people — yes. But let’s talk about why (purely from a tax perspective). First — I’m not a financial adviser, so I can’t tell you whether a pension is right for you personally. But I can explain how the tax relief works. Here’s the bit people often underestimate 👇 If you pay £4,000 into a private pension before 5th April: • The government adds £1,000 • Your pension pot gets £5,000 That’s 20% tax relief automatically added by the provider. If you’re a h

A director’s loan account becomes overdrawn when you take money out of your company that isn’t salary, dividends, or reimbursed expenses . It’s very common in owner-managed businesses — but if it’s left unresolved, it can come with unexpected tax bills for both the company and you personally. What does it mean for the company? 1. Section 455 tax – a temporary corporation tax charge If the loan hasn’t been repaid within 9 months and 1 day of the company’s year end, the com